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More financial support for new parents

Wednesday, June 21, 2023   Posted in: Signatory Notice Board By: Administrator With tags: families, children, parenting, finances

Beehive media release: 19th June 2023

Paid parental leave entitlements will increase on 1st July 2023 - putting an additional $51 a week into the pockets of new parents or an additional $1327 for those taking the full 26 weeks of parental leave, Associate Minister for Workplace Relations and Safety Priyanca Radhakrishnan has announced.

“It’s tough for families right now. The Chris Hipkins Government is committed to supporting Kiwi families to have a bit more in the pocket and ease some of the pressures they are facing,” Priyanca Radhakrishnan said.

“The parental leave payment will increase 7.7 percent to reflect the rise in the average wage. Eligible parents will see an increase in the parental leave payment from $661.12 per week to $712.17 per week, before tax.

“The minimum rate for self-employed parents will increase to $227 per week, which is equal to 10 hours of the minimum wage for an adult worker.

“The extra $51 per week will help support a large number of families with 56,200 people receiving a payment in 2022,” Priyanca Radhakrishnan said.

Eligible parents can receive payments for up to 26 weeks.

From mid-2024, new parents will also receive a three percent government contribution to their KiwiSaver while on paid parental leave, provided they continue their own KiwiSaver contributions. This initiative in Budget 2023 recognises that child carers can see their nest egg worse off while on parental leave.

“The Government is committed to making sure that families receive the support they need with this important investment, enabling parents to focus on their new-borns in the early days,” Priyanca Radhakrishnan said. 

The Employment New Zealand website has the most up-to-date information about parental leave, including eligibility, payments and returning to work.